Enel Green Power North America Inc. (EGPNA), the U.S. renewable energy company of the Enel Group, has signed a tax equity agreement for the 300 MW Rock Creek wind farm in Missouri.
Rock Creek Wind Holdings LLC, which owns the project through special purpose vehicle Rock Creek Wind Project LLC, is fully owned by EGPNA.
The agreement with Bank of America Merrill Lynch and J.P. Morgan is worth approximately $365 million, which the investors will contribute in exchange for 100% of Class B equity interests in the project.
This interest will allow the two investors to obtain, under certain conditions set by U.S. tax laws, a percentage of the fiscal benefits of the project. In turn, EGPNA, through Rock Creek Holdings, will retain 100% ownership of the Class A interests and, therefore, management control of the project.
The agreement secures the funding commitment by the two investors, and the closing of the funding is expected to occur upon completion of construction and achievement of commercial operation of the project. The tax equity partnership will be supported by a parent company guarantee from Enel S.p.A.
The wind farm, whose construction started in October 2016, is expected to begin operations by the end of this year. Once fully operational, Rock Creek, which represents EGPNA’s first wind project in Missouri, will be able to generate around 1,250 GWh per year, providing enough energy to meet the annual consumption needs of more than 100,000 average U.S. households.